Danish transport and logistics giant AP Moller-Maersk (APMM) is expanding its focus on ‘responsible ship recycling’ after the European Commission enforced tough ship recycling norms in the last three years.
APMM’s target for 2022 is continued advocacy and collaboration to advance inclusion of compliant ship recycling yards at Alang on the European list of recycling facilities and to secure creation of new opportunities for responsible ship recycling for larger vessels.
In the last five years, APMM recycled 16 vessels in six yards in Alang, Gujarat. In 2021, it sold two vessels for recycling with yards in Alang, and completed recycling of three vessels that were sent to Alang in 2020, according to the company’s 2021 annual report (AR).
Alang is one of the three locations in South Asia where around 20 per cent of the world’s tonnage is sent for recycling.
NGO Shipbreaking Platform said that 763 ocean-going commercial ships and floating offshore units were sold to scrap yards in 2021. Of these, 583 ended up on the beaches of India, Bangladesh and Pakistan.
Ship recycling policies
In 2021, around 14 workers lost their lives while ships were broken apart on the beaches of Chattogram, Bangladesh, and another 34 were severely injured. Two deaths were reported in Alang and two deaths in Gadani, Pakistan. Some of these accidents took place onboard vessels owned by well-known shipping companies, such as Berge Bulk, Nathalin Co, Polaris Shipping and Winson Oil. “The sector suffers from a serious lack of transparency, and it is expected that several accidents go unreported”, says Sara Costa, Project Officer at the NGO Shipbreaking Platform.
APMM said that despite many shipowners having policies for responsible ship recycling, nearly 90 per cent of the gross tonnage recycled is done under poor health, safety and environmental conditions. As global ship recycling volumes are set to nearly double by 2028 and quadruple by 2033, there is an urgent need to ensure that this growth in demand for ship recycling services will be met by suppliers with responsible practices.
The company’s engagement in Alang has driven a ‘transformational’ change in the ship recycling industry. The focus includes greenhouse gas impacts of ship recycling, according to the annual report.
From December 2018, EU-flagged commercial vessels above 500 GT must be recycled in safe and environmentally sound ship recycling facilities that are included in the European List of approved ship recycling facilities. The updated list in October 2021 said that 27 yards in India have applied for inclusion in the European list of ship recycling facilities but none have received approval.
Over 90 of around 120 operational yards in Alang have voluntarily invested to be compliant with The Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC) though this is still pending entry into force.
“For too long, EU vessels have been dismantled in poor environmental and social conditions. This is not acceptable any longer. The full entry into force of the EU Regulation on ship recycling is a milestone for this sector, as it provides for the first time clear and specific rules on how EU-flagged vessels should be recycled,” said Karmenu Vella - Commissioner for Environment, Maritime Affairs and Fisheries - European Commission.
A significant part of the global shipping fleet ready for recycling in the next decade comes from the post-Panamax category. Very few yards included in the EU list of compliant yards can handle these vessels. This means there will be an urgency for including Asian yards that can recycle such large vessels.